The Performance of Johnson Distributions for Computing Value at Risk and Expected Shortfall

dig.v42.n1
  1. Poor
  2. Satisfactory
  3. Good
  4. Very Good
  5. Excellent

Be the first. (0 ratings)

Log in to rate this article.

CFA Digest
February 2012 | Vol. 42 | No. 1 | 3 pages
Source: CFA Institute
Jean-Guy Simonato
Nicholas J. Handley, CFA (Reviewer)

Read

Abstract

The author proposes the Johnson family of distributions as a superior approach toapproximating unknown return distributions and calculating their risk measures,such as value at risk (VaR) and expected shortfall (ES). This method providesvalid approximations across the spectrum of skew–kurtosis pairs, incontrast to the commonly used Gram–Charlier and Cornish–Fisherapproaches, and returns quantitatively superior VaR and ES estimates.

View more information

Topics
Quantitative Methods
    :
  • Basic Statistical and Probability Concepts
|
Risk Management
    :
  • Firmwide Risk Management
Credits · About the CE Program
0 CE (including 0 SER) Manage CE Credits

People who viewed this page also viewed:

Events

Advanced Risk and Portfolio Management Bootcamp - ARPM Bootcamp

The six-day course provides in-depth understanding of buy-side quantitative modeling from the foundations to the most advanced statistical ... More

Loading ...